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Midway Truck Parts Improves Business Results With Datalliance Vendor Managed Inventory
- VMI drives customer service improvements, increased sales, and improved inventory turns
Cincinnati, Ohio, April 09, 2008 -
Datalliance® today announced that Midway Truck Parts, a leading distributor of heavy duty truck parts, has realized significant business benefits as a result of their successful implementation of Datalliance Vendor Managed Inventory (VMI). Midway's business challenge was to better anticipate customer needs, stock appropriate parts at quantities to meet demand levels, replenish stock in a timely manner, and minimize inventory investment to support a positive bottom line.
Business Results
Midway has realized business results in several areas after using Datalliance VMI with SKF, one of Midway's primary suppliers. Roger Egeland, Product Manager, Midway Truck Parts, said "One of our biggest VMI benefits is improved customer service. Since implementing VMI, our out-of-stocks have decreased 64%! That's a significant improvement that tells us we now have the right products on the shelf. Our VMI orders are more accurate and timely. The confidence level of both our counter workers and our customers has risen. As a result of this increased confidence, demand for SKF products over this time period has increased 32% and sales dollar volume 10%. VMI gives us the information to fine tune our product mix. These impressive bottom line results are directly related to VMI and our improved customer service and inventory management capabilities."
From an inventory management and replenishment perspective, VMI has helped Midway increase inventory turns resulting in improved cash flow. "Since moving to VMI, our inventory turns have improved 10%," explained Egeland. "Now that our product mix more accurately reflects customer demand, inventory is turning over quicker, a change which results in an increase in cash flow and a decrease in carrying costs. Datalliance VMI also recognizes what parts are potentially obsolete which allows us to return those parts and remove them from our inventory."
Major Supplier Recommends VMI
SKF, one of Midway's primary suppliers, approached Midway and encouraged them to participate in their Vendor Managed Inventory program. SKF wanted to enhance their relationship with Midway by using VMI to help manage their inventory replenishment process. "SKF has used VMI with great success for many years," stated Dennis Osiecki, SKF Regional Manager. "We were confident that Midway and SKF could mutually benefit by utilizing the Datalliance VMI service. The results that Midway has achieved in increased sales, reduced stockouts, and increased inventory turns says it all."
About Datalliance
Datalliance is the world's largest independent VMI service provider, processing over $6 billion in orders, 9.2 million SKUs, and 19,500 locations. Delivered as a managed service via the Internet using the 'Software as a Service' (SaaS) model, Datalliance VMI makes it easy for suppliers and their customers to establish effective VMI relationships that fully align business objectives, improve collaboration, and streamline supply chain operations. Datalliance serves leading Fortune 1000 companies in a number of different industries. For more information about Datalliance and VMI, visit www.datalliance.com
Contact: Brian Lindner, Datalliance
513-791-7272 or blindner@datalliance.com
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